A recent survey of U.S. early adopters by high-tech market researcher In-Stat found that almost half of those respondents planning to replace their cell phones want Wi-Fi capability. To meet the growing demand, there is an avalanche of dual-mode phones in the pipeline. By the end of this year, the Wi-Fi Alliance will have certified more than 100 different models of Wi-Fi/Cellular phones.

“In the years ahead, dual-mode VoIP-capable phone systems will have increasing competition from other technologies, like femtocells for cellular coverage, but widespread Wi-Fi deployment and the variety of Wi-Fi/Cellular handsets offers Wi-Fi/Cellular-based systems a significant head start in the market,” says Allen Nogee, In-Stat Principal Analyst. “Other technologies, such as WiMAX and Ultra Wideband, are also poised to enter the handset market, but Wi-Fi fills a unique niche that WiMAX and UWB cannot match.”

Recent research by In-Stat found the following:

• Phones supporting voice over Wi-Fi are limited in numbers today, but will exceed 100 models by year end.
• VoIP will be big; the number of Wi-Fi/Cellular phones shipped incorporating some form of SIP voice support is forecasted to exceed 50 million by 2011.
• Many of the issues with early Wi-Fi/Cellular handsets, such as limited battery life, will be resolved in models released during 2007.

The research, “Worldwide Demand for Wi-Fi/Cellular Combo Phones”, covers the market for dual-mode Wi-Fi/Cellular handsets. It includes a description of the players who make Wi-Fi/Cellular handsets a reality, a description and pictures of some recent model Wi-Fi/Cellular handsets, results of an In-Stat survey about the demand for Wi-Fi in cellular handsets, and worldwide Wi-Fi/Cellular forecasts through 2011. These topics paint a clear picture of the Wi-Fi/Cellular handset market and identify some of the challenges ahead for this market.